Overconfidence in Electronic Reverse Auctions

Autor(en)
Ayşegül Engin, Rudolf Vetschera
Abstrakt

Overconfidence, which is mainly considered as a cause for the winner's curse in common value auctions, can have a significant impact on bidding behavior in auctions. This paper experimentally studies optimistic overconfidence in electronic reverse auction context. We argue that overconfidence in this context may lead to misperceptions of the bidder's own cost affecting his probability of winning. We also study interactions of overconfidence with other psychometric properties of the bidder, and the format of information presentation. The results indicate that overconfidence leads to more aggressive bidding, but the effect can be mitigated in participants with higher risk literacy.

Organisation(en)
Institut für Business Decisions and Analytics, Institut für Betriebswirtschaftslehre
Seiten
41
Anzahl der Seiten
46
Publikationsdatum
09-2019
Publikationsstatus
Veröffentlicht
Peer-reviewed
Ja
ÖFOS 2012
502052 Betriebswirtschaftslehre
Link zum Portal
https://ucris.univie.ac.at/portal/de/publications/overconfidence-in-electronic-reverse-auctions(be6bb8d4-fef6-45fb-854f-afbdba9e7a6e).html